administration of rules of origin · department of immigration and border protection wco origin...

Department of Immigration and Border Protection

Administration of Rules of Origin Gabrielle Tramby

Traveller, Customs and Industry Policy Division

WCO Origin Conference 2017


• Australia-United States Free Trade Agreement (AUSFTA)

• Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA)

• Australia-Chile Free Trade Agreement (ACIFTA)

• South Pacific Trade and Economic Co-Operation Agreement (SPARTECA)

• Generalised System of Preferences (GSP)

• Malaysia-Australia Free Trade Agreement (MAFTA)

• Trans-Pacific Partnership (TPP)

• Singapore-Australia Free Trade Agreement (SAFTA)

• Korea-Australia Free Trade Agreement (KAFTA)

• Japan-Australia Economic Partnership Agreement (JAEPA)

• China-Australia Free Trade Agreement (ChAFTA)

• Thailand-Australia Free Trade Agreement (TAFTA)

• ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)

WCO Origin Conference 2017 2

Australia’s trade agreements


To claim preferential tariff treatment the importer

must be able to prove the origin of the good.

The documentary evidence of origin required varies

across our trade agreements.


Documentary evidence of origin


1. Certificate of Origin

2. Written declaration of origin


Different types of documentary evidence of origin

Department of Immigration and Border Protection 5

Method Agreement

Knowledge by the importer Australia-United States Free Trade Agreement (AUSFTA)

Written declaration / Declaration of Origin

filled out by the exporter or producer

Australia-New Zealand Closer Economic Relations Trade

Agreement (ANZCERTA)

Australia-Chile Free Trade Agreement (ACIFTA)

South Pacific Trade and Economic Co-Operation

Agreement (SPARTECA)

Generalised System of Preferences (GSP)

Malaysia-Australia Free Trade Agreement (MAFTA)

Trans-Pacific Partnership (TPP)

Certificate of Origin that can be used for

multiple shipments supplemented by written

declaration for each shipment

Singapore-Australia Free Trade Agreement (SAFTA)

Korea-Australia Free Trade Agreement (KAFTA)

Certificate of Origin for each shipment or

written declaration each shipment

Japan-Australia Economic Partnership Agreement

(JAEPA)

Certificate of Origin for each shipment but a

written declaration can be used where there is

an Advance Ruling on the origin of the good

China-Australia Free Trade Agreement (ChAFTA)

Certificate of Origin for each shipment Thailand-Australia Free Trade Agreement (TAFTA)

ASEAN-Australia-New Zealand Free Trade Area

(AANZFTA)

WCO Origin Conference 2017


Certificates of Origin and other written declarations

of origin are treated the same.

Claims for preferential tariff treatment must meet

the requirements of the relevant trade agreements.

Verification is carried out selectively, based on risk

assessment and intelligence.


Australia’s experience with written declarations


A written declaration states that the identified good meets a free trade agreement’s rules of origin requirements, and are therefore originating.

A written declaration is based on information provided by the producer or exporter.


What is a written declaration of origin?


A certificate of origin is issued by or on behalf of

the government of the exporting party.

A declaration of origin removes the third party and

is issued by the exporter or producer of the good.


What is the difference between a certificate of origin and a written declaration of origin?


We assess non-compliance using a risk-based

approach to identify common non-compliant

behaviour.

This informs treatment responses to ensure they

are proportionate to the offence committed.


Approach to compliance

Department of Immigration and Border Protection WCO Origin Conference 2017 10

Risk assessment

The Australian Border Force may seek further

evidence of preference entitlement for any specific

reason or a simple intuitive selection, irrespective

of the existence of a certificate or a declaration.

Where there is insufficient evidence to establish

that preference applies, the general rate of duty is

payable.


Origin verification

Possession of a Certificate of Origin or a written

declaration of origin does not always provide

definitive proof that the imported goods actually

meet the rules of origin.

This can only be obtained by conducting the origin

verification.


How do you prove origin?

Self declaration: the responsibility is on the person making the claim.

They need to gather and keep information from each step of the supply chain.

The information needs to support a claim for preferential tariff treatment as required by the trade agreement.


How is origin verified?

Origin verification processes are the same for all

types of origin documentation.

1. Request information from the importer.

2. If needed, we will seek more information from

the importer (or producer/supplier) or authorised

body.

3. Finally, we may undertake a verification visit.


In line with the relevant trade agreement the

Australian Border Force may conduct a verification

visit if there is an identified need to do so.


Verification visit


The Australian Border Force compliance scheme is

complemented by sanctions which include a range

of penalties for non-compliance.


Penalty scheme


• JAEPA offers a written declaration option

• The declaration of origin includes elements that

can be verified:

o Producer/Exporter details

o Goods description

o HS tariff codes

o Preference claim/criteria

o Certified by parties to the transaction


Case study: Japan-Australia FTA (JAEPA)


All people involved in the supply chain should have

knowledge that claims for preference can be

supported.

Commercial documentation to support that claim

needs to be provided upon request.

Documentation based on Generally Accepted

Accounting Practices (GAAP).


Origin documentation


The documentary evidence to prove origin are

commercial documents that are obtained in the

ordinary course of business.


Supporting documentation


1. Provide clear and concise guidelines.

2. Ensure traders have an understanding of their

compliance obligations.

3. Highlight penalty regime for non-compliance.

4. Apply a whole of government approach.

5. Work closely and cooperatively with all parties

to achieve satisfactory outcomes.


Role of the Customs administration


• Widely recognised by traders as a cost-effective

measure for facilitating trade.

• Facilitates responsiveness to modern supply

chain patterns.

• Cuts red tape and speeds up the flow of trade.

• Reduction in administrative burdens to prove

origin.


Why we use a written declaration for traders?


• Places the onus for documentary evidence on

the person seeking preferential tariff treatment

rather than on a third party.

• Removes the administrative burden from

exporting agencies.


How does a written declaration work for Customs agencies?


Thank you

administration of rules of origin · department of immigration and border protection wco origin...

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